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Recurring Theme in Health Care Reform
Bending the cost curve Permanent reductions in provider
reimbursements Hospice: $6.8 billion over ten years
$$$$$$$$
Budget Neutrality Adjustment Factor (BNAF)
Multiplier to the hospice wage index each year
Began in FY2010 Spread over 7 years Final result = (4.2%) rate decrease
Productivity Adjustment Reduction
Reduction for all Medicare providers 1.3% reduction in hospital marketbasket
over 10 years
Additional reduction for hospices: Beginning in FY2013, an additional -0.3%
Net marketbasket increase:
2.4% - 1.3% - 0.3% = 0.8%
Changes in Hospice Rates
140
145
150
155
160
165
170
175
180
185
19020
09
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Ro
uti
ne
Ho
me
Car
e R
ate
No Reductions
Productivity Factor Only
All Cuts
Sample Routine Home Care Rates
No Cuts BNAF Productivity Factor
All Cuts
October 1, 2019
$181.11 $176.01 $159.66 $155.13
October 1, 2015
$164.91 $160.27 $154.84 $150.44
October 1, 2010
$146.68 $145.64 $146.68 $145.64
• Next 10 years• $8.45 increase in routine home care rate
CMS Grants Suspension in Enforcement
NHPCO met with CMS on December 21 CMS granted a 3-month suspension in
enforcement of the face-to-face final rule Contractors (MACs) instructed not to conduct
reviews on face-to-face encounters until 2nd quarter 2011
Opportunity for hospices to get their processes in place and look for problem areas
Face-to-face encounters must still be conducted and should have begun January 1, 2011
Questions and Concerns
Same physician for face to face encounter, brief narrative and recertification
“Prior to” language in statute and how to admit new patients to your hospice that have previous hospice experience
Common Working File accessibility and accuracy
Transitions on January 1, 2011
Patients who enter 3rd benefit period or later before the end of 2010: No face-to-face encounter required until
the recertification period is reached after January 1, 2011
Patients who enter 3rd benefit period or later after January 1, 2011 Face-to-face encounter required
Is the encounter a billable visit?
No, considered an administrative function
If a non-administrative service, such as symptom management, is provided – hospice bills Part A
Documentation for visit needed, whether administrative or for services beyond the face-to-face
Documentation – clear and precise
Resources from NHPCO
Tip sheets on certification and recertification process
Sample forms for hospice use Care maps In-service education for staff Compliance checklists Frequently asked questions
Medical Review
Hospices with a high percentage of long stay patients (> 180 days)
100% medical review of those patients over 180 days by the fiscal intermediary
No guidance to MACs yet
Cost Report
Modifications being developed now NHPCO submitted sample worksheets to
CMS with recommendations Expect cost report as vehicle for more
data collection
Concurrent Care Demonstration Project
On hold until drafting language regarding funding is resolved between Senate Finance Committee and CMS
3 year demonstration program that would allow patients who are eligible for hospice care to also receive all other Medicare covered services while receiving hospice care
CMS will develop an application process 2011: Applications available 2012: Demonstration project to start
Concurrent Care for Children
For children in Medicaid and CHIP Children electing the Medicaid hospice benefit
may also receive curative treatments Effective immediately on enactment – March 23,
2010 CMS published state Medicaid Director Letter on
September 2010 giving direction to the state Medicaid agencies
NHPCO working with state leaders to develop tools for a state-by-state approach to implementation
Hospice Payment Reform
No earlier than FY2014 Originally proposed by the Medicare
Payment Advisory Commission (MedPAC) Considering options for reforming the
routine home care rate
NHPCO Response
The Moran Project Data from more than 600 hospice provider numbers 300,000 patients 13 million visits
Questions to answer: What kinds of payment methodologies can be modeled
for CMS and MedPAC? How can NHPCO provide new information to CMS and
MedPAC for their consideration in alternative payment models?
Performance Measures
12 measures tested in New York State Examples:
Pain, dyspnea, anxiety, nauseaFamily prepared for changes in patient’s
conditionAdverse events – falls, medication errors,
complaints Call for measures in February 2011
Hospice Quality Reporting
Mandatory reporting on hospice performance measures – expect Hospice Compare
Those who don’t report face a 2% reduction in marketbasket update
Measures to be published in 2012 for reporting to begin in 2014
Accountable Care Organizations
HHS Secretary must establish by 1/1/2012 Could be networks of practitioners or joint
ventures between hospitals and other providers
CMS requested comments – NHPCO responded on 12/6/2010
Hospices should look for opportunities to be at the table in these discussions
Medical Homes
Focused on primary care and prevention Stresses coordinated team approach
facilitated by information technology Typically, internal medicine, family practice,
geriatrics and general practice physicians
Creation of Health Benefit Exchanges
PPACA expands access to health insurance through the creation of Health Benefit Exchanges.
Exchanges can be administered by: a governmental agency a nonprofit entity established by the state.
If a state does not create an Exchange by Jan. 1, 2014, HHS will create and operate one.
Minimum Essential Benefit Plan Details
Essential Benefit Plans (EBPs) States must cover the cost of benefits over and above the
Essential Benefit Plan At a minimum, the EBPs must include:
outpatient services emergency services Hospitalization maternity and newborn care mental health services, including behavioral health treatment; prescription drugs laboratory services preventive and wellness services chronic disease management rehabilitative services pediatric services, including dental and vision care
New Levels of Scrutiny
CERT
QIO Routine Business
FI/Carrier/MAC
MIC
RAC
ZPIC/PSC
OIG
DOJ
Compliance Oversight
Legal Oversight
RISK
OV
ER
SIG
HT
Source: Strafford Publishing
Examples
Cert Audits: Comprehensive Error Rate Testing Review medical records and claims for compliance with Medicare
coverage, coding, and billing rules RAC: Recovery Audit Contractors
No hospice specific audits yet Expect audits in 2011
MIC: Medicaid Integrity Contractors Proposed recoupment in one audit: $3 million Questions about eligibility
ZPIC: Zone Program Integrity Contractor Active in 17 states Most serious of the audits – payment errors, high volume, high costs Results of analysis could be extrapolated to entire billing
OIG Areas of Risk in 2011
Duplicate drug claims for MHB and Part D – Report due in mid-spring 2011
Medicaid Utilization of the hospice benefit in the nursing
home Hospice services provided to nursing home
residents
Opportunities in these times Focus on the continuum of care What is my hospice the best at? How can my hospice partner with others
to meet the needs of patients and families? PACE Palliative care Pediatric palliative care Bereavement counseling Serving veterans
WE HONOR VETERANSA NATIONAL AWARENESS AND ACTION CAMPAIGN
WE HONOR VETERANSA NATIONAL AWARENESS AND ACTION CAMPAIGN
Did You Know…
28% of Americans who die each year are veterans
Over 1,800 veterans die each day Veterans have special care needs at the end
of life, especially if they are combat veterans It is imperative that hospices step up, acquire
the necessary skills and serve these veterans with the dignity they deserve
What does We Honor Veterans mean?
Asking about military history and knowing what to do with the answer
Partnering to design care specific to veteran needs
Extending VA and agency “reach” to improve care and access
Improving quality by measuring the impact of VA and agency interventions
Enroll Your Hospice as a We Honor Veterans Partner Now
Recruit: Get oriented and commit Level 1: Provide Veteran-centric education Level 2: Build organizational capacity Level 3: Develop and strengthen relationships Level 4: Increase access and improve quality
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